Posted on April 7, 2025, by Niftynews
Vedanta Shares, the mining conglomerate owned by Anil Agarwal, have experienced a significant decline, falling by 18% over the past three trading sessions. On April 7, 2025, the stock fell 7% on top of a 9% decline last Friday and 4% on Thursday. This drop highlights the ongoing struggles of Vedanta in the current market, with its shares continuing to decline amidst growing concerns over the global economic situation.
Key Movements and Technical Analysis of Vedanta Shares
In recent trading, Vedanta stock has slipped below its key moving averages, including the 50-Day, 100-Day, and 200-Day Moving Averages. This marks a significant technical breakdown, indicating that the stock could face further pressure in the near term. The Relative Strength Index (RSI), which measures the speed and change of price movements, has fallen to 26, signaling that the stock is in oversold territory (an RSI below 30 indicates an oversold condition).
Currently, Vedanta shares are trading at ₹379, which is 5.6% lower than the previous trading day. This recent drop has wiped out the gains for Vedanta stock in 2025, with the stock now down 15% in 2025 alone. Moreover, the stock has corrected nearly 30% from its 52-week high of ₹526, although it is still 15% above its 52-week low of ₹317.
Factors Contributing to the Decline in Vedanta Stock
The recent fall in Vedanta shares can be attributed to several factors. Most notably, there is growing concern over a global recession, particularly in the US, which has impacted the performance of metal stocks in general. Despite a correction in the US Dollar, which typically benefits metal stocks, fears of an economic slowdown have weighed heavily on these stocks, and Vedanta has not been immune to this trend.
Additionally, Vedanta’s deferred demerger plans, now rescheduled for September 2025, have raised concerns among investors. The company had initially planned to split its business into five independent entities, with shareholders receiving shares of the demerged companies. However, the delay, caused by the need for regulatory approvals, has added further uncertainty to the stock’s outlook.
Analysts’ Price Targets for Vedanta
Despite the recent challenges, Vedanta still has a significant number of analysts who remain optimistic about its long-term prospects. Among the 15 analysts covering the stock, 9 analysts maintain a “buy” rating, while 5 analysts have a “hold” rating, and 1 analyst has a “sell” rating.
The highest price target for Vedanta shares currently comes from ICICI Securities, with a target of ₹605. Other analysts, including Emkay and IIFL Institutional, have set price targets of ₹575 and ₹570, respectively. These targets are significantly higher than the current trading price of ₹379, suggesting potential upside if the stock rebounds from its current lows.
On the flip side, Kotak has the lowest target on Vedanta, with a price target of ₹465. Given the current trading price, Vedanta is still below all of these target levels, which further emphasizes the recent struggle the stock has faced.
What Does This Mean for Investors?
Investors should be cautious in the near term, as Vedanta stock continues to be under pressure due to both global economic concerns and company-specific challenges like the delay in its demerger plans. The stock’s technical indicators suggest that it may continue to face headwinds, and short-term volatility could persist. However, those with a long-term investment horizon might view the current dip as an opportunity to buy the stock at a discount if they believe in the company’s fundamentals.
Conclusion: Is This the Right Time to Buy Vedanta Shares?
With Vedanta shares facing a significant decline, now is the time for investors to closely monitor the stock’s movements. Although the company’s long-term outlook remains intact, the near-term risks tied to global recession fears and regulatory delays in the demerger process cannot be ignored.
For those interested in Vedanta stock, it may be prudent to wait for clearer signs of stabilization in the market or better alignment with analysts’ price targets. As always, careful evaluation of market conditions, technical indicators, and company developments will be crucial to making informed decisions in these volatile times.
